Selected Data for the Current Year Ended December 31 Are

Essay

Selected data for the current year ended December 31 are as follows: $\begin{array}{lrr}&\text { Balance } & \text { Balance } \\&\text { December 31 } & \text { January 1 }\\\text { Accrued expenses (operating expenses) } & \$ 29,500 & \$ 22,000 \\\text { Accounts payable (merchandise creditors) } & 90,000 & 135,000 \\\text { Inventories } & 42,500 & 68,000 \\\text { Prepaid expenses } & 23,000 & 20,000\end{array}$ ​
During the current year, the cost of goods sold was $620,000 and the operating expenses other than depreciation were $142,000. The direct method is used for presenting the cash flows from operating activities on the statement of cash flows.
Determine the amount reported on the statement of cash flows for (a) cash payments for merchandise and (b) cash payments for operating expenses.